Monday, November 3, 2008

The Death of Ethanol: One Thing Wall Street Saw Coming

From the Wall Street Journal's Deal Journal:

Once upon a time, ethanol was seen as the future of clean energy and as leading the U.S. to energy independence.

That was 2004, but Wall Street wised up fast that ethanol was ready for a bust. So, in 2006 and 2007, when Wall Street firms started investing their own money in renewable energy companies, they left ethanol far behind.

“It’s such a waste that the government gave free handouts and subsidies to grow a business that wasn’t sustainable,” said one investment banker familiar with the sector....MUCH MORE